OFFERING MEMORANDUM BLINK FITNESS QUEENS, NEW YORK

OFFERING MEMORANDUM BLINK FITNESS QUEENS, NEW YORK

2 INVESTMENT OVERVIEW 3 INVESTMENT OVERVIEW Marcus & Millichap is pleased to present this brand-new construction, Liberty Square retail property in Ozone Park (Queens), New York. The anchor tenant, Blink Fitness, occupies 15,500 square feet (8,000 square feet of the ground floor and all 7,500 square feet of the basement level). Blink has more than 14 years remaining on its original 15-year modified double-net (NN) lease, and has 12 percent rent increases every five years. Avanzar Smoothie and Juice Bar both signed 10-year modified double-net (NN) leases featuring annual rent increases over the base term. More Than 90 percent of the asset is backed by Blink Holdings, Incorporated, operator of 51 corporate fitness centers across the New York Area. Avanzar Smoothie and Juice Bar are backed by strong personal guarantees. The subject property is situated on a hard corner at the intersection of Liberty Avenue and 103rd Street, which sees more than 18,000 vehicles per day (VPD). This asset sits on nearly a quarter of an acre with 9,500 square feet of air rights. This dense infill location has high barriers to entry with more than 88,900 residents in less than one mile. Less than one-tenth of a mile west is the 104th Street-Oxford Avenue A-Line Station, which provides direct access to Brooklyn and Manhattan. Additionally, the asset is less than one mile from Resorts World Casino at Aqueduct Racetrack. The casino currently hosts more than 10 million guests annually. Additionally, the casino is undergoing a $400 Million expansion plan to develop a 400-room four-star hotel with five-star suites, retail, and restaurants. The subject property is also less than five miles from the busiest international airport in North America. John F Kennedy (JFK) International Airport sees more than 58 million passengers per year. JFK AIRPORT (More than 58M Passengers Annually) INVESTMENT OVERVIEW New Construction Liberty Square in Ozone Park (Queens), New York Tenants Feature Blink Fitness, Avanzar Smoothie, and Juice Bar Limited Landlord Responsibilities Tenants Operating Under Modified Double-Net (NN) Leases Strong Rent Increases Blink Has 12 Percent Rent Increases Every Five Years Avanzar Smoothie and Juice Bar Feature Strong Annual Rental Increases More Than 90 Percent of Asset is Backed by Blink Holdings, Incorporated Operator of More Than 50 Corporate Fitness Centers in the Northeast Hard Corner Location at the Intersection of Liberty Avenue and 103rd Street More Than 18,000 Vehicles Per Day (VPD) Nearly a Quarter Acre With 9,500 Square Feet of Air Rights in the Dense Infill Neighborhood of Ozone Park More Than 88,900 Residents in Less Than One Mile Less Than a Tenth of a Mile from 104th Street-Oxford Avenue A-Line Station Direct Access to Brooklyn and Manhattan Walker s Paradise and Excellent Transit by Redfin Asset is Less Than One Mile from Resorts World Casino at Aqueduct Racetrack 10 Million Guests Annually $400 Million Expansion Project Featuring a 400-Room Four-Star Hotel With Five-Star Suites Less Than Five Miles from John F. Kennedy (JFK) International Airport More Than 58 Million Passengers Annually

4 FINANCIAL OVERVIEW 5 LEASE SUMMARY FINANCIAL OVERVIEW LEASE SUMMARY PRICE: $12,000,000 CAP RATE: 5.09% NOI: $610,676 PRICE PER SQUARE FOOT: $697.67 Base Rent $629,260 Expense Reimbursements Real Estate Taxes* $2,517 Total Expense Reimbursements $2,517 Effective Gross Income $631,777 Expenses Real Estate Taxes $14,360 Insurance $6,741 Total Expenses $21,101 Net Operating Income $610,676 *Blink is reimbursing 92% of Real Estate Taxes above the 2016-17 Base Year. Avanzar Smoothie and Juice Bar are reimbursing based on their Pro Rata Share of Ground Floor Gross Leaseable Area, 10.31% and 7.22% respectively. Total Ground Floor Gross Leasable Area is 9,700 square feet. Blink Occupies 8,000 square feet of Ground Floor Gross Leasable Area and is the only tenant to occupy 7,500 square feet of the basement level. RENT PER SQUARE FOOT: $36.58 YEAR BUILT: 2016 TENANT SUMMARY APPROXIMATE LOT SIZE: 0.22 Acres Tenant Guarantor GLA % of GLA BLINK FITNESS Blink Holdings, Incorporated Lease Commence Lease Expire Term Remaining Annual Rent Rent- (PSF) Increases Lease Type Renewal Options 15,500 90.12% 9/8/2016 9/30/2031 14 Years $550,000 $35.48 12% Every 5 Years Modified NN 2, 5-Year GROSS LEASEABLE AREA: 17,200 AVANZAR SMOOTHIE Personal Guarantee 1,000 5.81% 11/15/2016 11/14/2026 9 Years $43,260 $43.26 Annually Modified NN 1, 5-Year TYPE OF OWNERSHIP: Fee Simple JUICE BAR** Personal Guarantee 700 4.07% TBD TBD TBD $36,000 $51.43 TBD Modified NN TBD Total 17,200 100.00% $629,260 ** Pending Lease

6 TENANT OVERVIEW 7 DEMOGRAPHICS TENANT OVERVIEW - BLINK FITNESS DEMOGRAPHICS Founded in 2011, Blink is known for its signature Mood Above Muscle philosophy, which celebrates the positive emotions generated by exercise as opposed to solely focusing on physical benefits. The clubs Feel Good Experience brings this philosophy to life through five key areas Blink has identified as essential to a great member experience, and that differentiate Blink from other fitness clubs. First, members are always greeted with enthusiasm and treated with respect. Second, their Everyone Cleans philosophy ensures that the gyms are always spotless. Third, clubs are painted colors that are proven to have a positive effect on mood and are designed to be open, spacious and bright. Fourth, they play music that is specifically selected to keep members energized throughout their workout, and fifth, their training programs are designed to be motivating and affordable. Memberships start at $15 per month. The brand s EBITDA grew sevenfold between 2015 and 2016, according to data provided to Club Industry and total memberships have tripled since 2013. Blink Fitness is planning to have 300 clubs by 2021 through both corporate- and franchise-based expansions. The six-year-old brand currently operates more than 50 locations and approximately 20 locations are under development. Blink currently has more than 300,000 members TENANT PROFILE TENANT TRADE NAME OWNERSHIP TENANT LEASE GUARANTOR Blink Fitness Private Blink Liberty Avenue, Incorporated Blink Holdings, Incorporated NUMBER OF LOCATIONS 51 HEADQUARTERED New York, New York WEB SITE https://www.blinkfitness.com/ MEMBERS 300,000+ 1-Mile 2-Mile 3-Mile POPULATION 2000 Population 95,557 329,587 602,779 2010 Population 95,472 330,885 611,828 2017 Population 88,960 318,275 613,335 2022 Population 90,244 324,775 630,732 1-Mile 2-Mile 3-Mile HOUSEHOLDS 2000 Households 29,145 103,592 200,518 2010 Households 28,324 102,719 202,823 2017 Households 25,959 98,387 204,128 1-Mile 2-Mile 3-Mile HOUSEHOLD (HH) INCOMES 2017 Average HH Income $81,471 $78,105 $78,629 2017 Median HH Income $63,928 $60,457 $59,589 2017 Per Capita Income $23,774 $24,144 $26,169 2022 Households 26,240 100,293 210,051

8 ABOUT QUEENS, NEW YORK Queens is the easternmost and largest in area of the five boroughs of New York City. It is geographically adjacent to the Brooklyn at the southwestern end of Long Island, and to Nassau County farther east on Long Island. Additionally, Queens shares water borders with the boroughs of Manhattan and the Bronx. It is the second-largest in population (after Brooklyn), with a census-estimated 2,333,054 residents in 2016. Queens is the second-largest and most diverse economy of New York City s five boroughs with occupations spread relatively evenly across the health care, retail trade, manufacturing, construction, transportation, and film and television production. The diversification in Queens economy is reflected in the large amount of employment in the export-oriented portions of its economy such as transportation, manufacturing, and business services. Queens is home to two of the three major New York City area airports: John F. Kennedy (JFK) International Airport and LaGuardia Airport. These airports are among the busiest in the world, making the airspace above Queens the most congested in the country. The airline industry provides almost one quarter of the sector s employment and more than 30 percent of the sector s wages. QUEENS, NEW YORK OZONE PARK ABOUT OZONE PARK Queens is the easternmost and largest in area of the five boroughs of New York City. It is geographically adjacent to the Brooklyn at the southwestern end of Long Island, and to Nassau County farther east on Long Island. Additionally, Queens shares water borders with the boroughs of Manhattan and the Bronx. It is the second-largest in population (after Brooklyn), with a census-estimated 2,333,054 residents in 2016. Queens is the second-largest and most diverse economy of New York City s five boroughs with occupations spread relatively evenly across the health care, retail trade, manufacturing, construction, transportation, and film and television production. The diversification in Queens economy is reflected in the large amount of employment in the export-oriented portions of its economy such as transportation, manufacturing, and business services. Queens is home to two of the three major New York City area airports: John F. Kennedy (JFK) International Airport and LaGuardia Airport. These airports are among the busiest in the world, making the airspace above Queens the most congested in the country. The airline industry provides almost one quarter of the sector s employment and more than 30 percent of the sector s wages. The village of Lincolnshire holds an annual summer festival; The Taste of Lincolnshire features and advertises taste-size samples of local restaurants and provides local entertainment, including musicians, a raffle, and a local pet show. Since 1993, Lincolnshire

MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

BLINK FITNESS QUEENS, NEW YORK 102-16 LIBERTY AVE, OZONE PARK, NEW YORK 11416 BROKER OF RECORD: JD PARKER MARCUS & MILLICHAP NEW YORK, NY LICENSE: 31PA1159742